Lincoln University - Office of Institutional Effectiveness

Budget Development

The budget is a detailed statement outlining estimated project costs to support the sponsored project. A budget should include all the Direct Costs and Facilities and Administrative (F&A) (or overhead) costs required to carry out the project objectives. Specific requirements, including cost principles as defined by the federal government in the Office of Management & Budget (OMB) Circular A-21, must be adhered to at the proposal stage and when the funds are expended. Proposals to non-federal sponsors requesting approval of direct costs which are unallowable for federal reimbursement should clearly include and justify those costs in the budget.

  • Direct Costs – Expenses that are specifically associated with a particular sponsored project or activity and/or can be directly assigned to that project or activity with a high degree of accuracy for example graduate student stipend and tuition.
  • F&A Costs – Institute expenses that cannot be specifically identified with a particular project or activity.  Determining and calculating the appropriate F&A rate can be a complex process based on many variables.  Please contact ORSP for assistance.
    • On-campus rate for sponsored activities: 55% Salaries and Fringe Benefits
    • On-campus rate for other sponsored activities: 20% Salaries and Fringe Benefits
    • Non-standard sponsor’s rates are honored if they are specifically limited in the FOA, in authorizing legislation, or in the sponsor’s published policy.
  • Fringe Benefits
    • Faculty/Full Time Employees: 32.8%
    • Part Time Faculty/Employees: 10.3%
  • Per Diem Meal Allowance: $50 per day

**Offers no reimbursement for alcohol.

  • Travel Expenses by Car: Per mile rate for travelers using a privately owned vehicle: 50.5cents per mile

Faculty and Research Staff and Salary Effort

The largest category of expense on any sponsored program budget is normally personnel expenses. Proposals should accurately represent the amount of direct effort (often measured as a percentage of the PD/PI’s time) that key personnel are committing to the project.

  • Faculty academic year (AY) and summer effort should be budgeted as separate line items.
  • Adhere to the National Institutes of Health (NIH) salary caps on faculty compensation. Any other salary limitations imposed by the sponsor in its solicitation should be brought to the attention of the ORSP as early as possible.

Sample Budget Justification

P. Jones, Principal Investigator (PI), will devote two summer months to the project. She has overall responsibility for the proposed project, including the design and conduct of experiments, analysis of data, preparation of manuscripts, and presentations.
W. Smith, Co-PI, will devote two academic months to the project. He will assist PI Jones in all activities, and will personally conduct all experiments involving animals described in Objective